Fresh concerns have emerged across Nigeria’s public university system following a Federal Government directive asking universities to fund certain academic staff allowances through their Internally Generated Revenue (IGR), a move many stakeholders fear could lead to increased tuition fees in federal institutions.
The development came to public attention after an internal memo from Modibbo Adama University, Yola, surfaced online, revealing that the institution had suspended payment of the Consequential Adjustment and Transport Allowance (CATA) to academic staff due to lack of financial backing from the Federal Government.
The memo, issued by the Office of the Bursar and dated May 18, 2026, stated that universities had earlier been directed by the Federal Ministry of Education to commence payment of the allowance using internally generated funds pending reimbursement by the government.
According to the document, Modibbo Adama University had been funding the allowance from its IGR since January 2026 but could no longer sustain the payments because the expected federal reimbursement had not been released.
The university subsequently announced the suspension of the allowance until further financial support is provided.
The development has triggered anxiety within the tertiary education sector, with concerns growing that many public universities may resort to increasing school fees and service charges in order to meet rising financial obligations.
Education stakeholders warn that several federal universities are already operating under intense financial pressure, with internally generated revenue unable to adequately cover staff welfare, infrastructure maintenance, research funding, and administrative costs simultaneously.
Some lecturers have also expressed concern that the policy could worsen existing tensions between university managements and academic unions, particularly at a time when institutions are already grappling with staff shortages, inflation, and declining public funding.
There are fears that students and parents may ultimately bear the burden if universities begin adjusting tuition structures to compensate for the growing funding gap.
The situation has further reignited conversations around the long-standing funding challenges facing Nigeria’s public universities and the sustainability of higher education financing in the country.
As of the time of filing this report, the Federal Ministry of Education had not issued an official public clarification regarding long-term funding arrangements for the affected allowances.
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